Swiss Stocks Fluctuate; Swisscom Declines, Roche Advances

By Daniela Silberstein

Feb. 25 (Bloomberg) -- Swiss stocks swung between gains and losses as Moody’s Investors Service followed Standard & Poor’s in warning Greece’s debt rating may be cut, overshadowing gains by drugmakers.

Swisscom AG, the country’s biggest telephone company, fell for a fourth day. Roche Holding AG advanced 0.5 percent after the drugmaker’s Avastin met its main goal in a study for ovarian cancer.

The benchmark Swiss Market Index, a gauge of the biggest and most actively traded companies, gained 3.1, or less than 0.1 percent, to 6,691.05 at 9:49 a.m. in Zurich. The broader Swiss Performance Index was little changed at 5,742.81.

Greece’s sovereign debt rating may be cut within months unless the country meets the objectives of its fiscal deficit reduction plan, Moody’s said today. If Moody’s cuts its credit rating to the same level as the other major ratings companies, Greek government bonds would no longer be eligible as collateral at the European Central Bank, making it more difficult for the nation to borrow.

Standard & Poor’s said yesterday it may lower Greece’s credit rating by the end of March.

Swisscom dropped 1 percent to 367.9 Swiss francs. Switzerland’s largest telephone company’s Italian unit, Fastweb SpA, was downgraded to “underweight” from “buy” at Banca Leonardo. Swisscom shares have dropped 3.2 percent this week so far after an announcement that Fastweb’s founder and chief executive are under tax fraud investigation.

Roche

Roche advanced 0.5 percent to 180.3 francs. The world’s biggest maker of cancer medicines said its Avastin tumor drug kept ovarian cancer at bay in a clinical trial.

“This is a positive catalyst for Roche and further supports the Avastin franchise,” Silvia Schanz, an analyst at Bank Vontobel AG in Zurich, wrote in a note.

Allreal Holding AG dropped 0.6 percent to 124.9 francs. The Swiss property company said full-year profit before revaluation effects dropped to 88.6 million francs ($81.5 million) from 90.7 million francs a year earlier.

Micronas Semiconductor Holding AG slid 7.3 percent to 4.05 francs. The company in a restructuring to concentrate on the automotive sector said full-year sales fell to 241.2 million francs.

BKW FMB Energie

BKW FMB Energie AG increased 0.8 percent to 79 francs. The utility owned by the canton of Bern said full-year profit rose to 298 million francs from 139 million francs a year earlier.

Rieter Holding AG climbed 3.8 percent to 264.5 francs. The world’s biggest maker of staple-fiber spinning machines was rated “outperform” in new coverage at Credit Suisse Group AG.

Sulzer AG advanced 1 percent to 95.75 francs. The world’s second-biggest maker of pumps said full-year net income fell 16.3 percent to 270.4 million francs.

Vontobel Holding AG gained 1.1 percent to 32.6 francs. The bank that specializes in derivatives said full-year profit increased 23 percent to 138.9 million francs on higher trading income.

To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.